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Glossary· Ways of investing

What is Step-up SIP?

Also known as Top-up SIP

A SIP whose instalment rises by a set percentage each year.

Tracks a rising income instead of freezing the contribution at what you could afford on day one. Over a long horizon the increment usually matters more to the final corpus than the return assumption does.

For the formula and the constants behind this figure, see Methodology.

Guides that use Step-up SIP

7 guides put this term to work.

More on ways of investing

The transaction types the calculators model.

SIP
A fixed amount invested on a fixed date, usually monthly.
Lumpsum
A single one-time investment.
SWP
A fixed amount redeemed on a schedule — a SIP in reverse.
STP
A scheduled move from one scheme to another within the same fund house.